Steinberg v Commissioner of Taxation (Cth) [1975] HCA 63

High Court of Australia Mason J. Barwick C.J. Menzies, Gibbs and Stephen JJ. Steinberg v Commissioner of Taxation (Cth) [1975] HCA 63

ORDER Appeals dismissed with costs. Usual orders as to exhibits. Appeals No. 4 and 5 of 1973 dismissed with costs. Appeal No. 6 of 1973 in relation to the sale of land at Innaloo dismissed with costs. Appeal No. 6 of 1973 in relation to the sale of the shares in Malgor Pty. Ltd. allowed with costs. Order of Mason J. varied accordingly. No order of cost of appeal to Mason J. Matter be remitted to the Commissioner to reassess in accordance with the reasons of this Court. Appeals No. 7 and 8 of 1973 allowed with costs. Orders of Mason J. set aside and in lieu thereof order that appeals be allowed with costs. Matter be remitted to the Commissioner to reassess in accordance with the reasons of this Court.

Cur. adv. vult.

1973, May 4 Mason J

. delivered the following written judgment:—

These appeals, by Morris Steinberg, by the trustee of a trust established by his wife Judith Steinberg and by Malcolm Steinberg, his son, relate to various transactions in which parcels of land situated at Innaloo, Rockingham and Wanneroo, outlying suburbs of Perth, were acquired and subsequently resold at a considerable profit. The principle actor in these transactions was Mr. Steinberg and it is therefore necessary to state shortly his circumstances and the arrangements which he made with respect to his affairs before, and in the course of, the relevant transactions.

In 1949 Mr. Steinberg commenced to carry on in partnership with his two brothers, Reuben and Matthew, the business of furniture manufacturers. In 1953 the wives of the three partners, including Judith, Mr. Steinberg's wife, became members of the partnership. It then acquired a retail firm in Murray St., Perth, and commenced to carry on a furniture retailing business under the name of Murray's Furnishing Stores. The business prospered until 1955 when its turnover was $360,000 and its profit in excess of $28,000 for the year.